These are the feedlots struggling with empty pens as cattle cycle, border closure reshape landscape

Cattle Call is an original production of the Nebraska Rural Radio Association and is presented Blue Chip Herefords – Oxford, Nebraska. Even with historically tight cattle supplies, market analyst Brad Kooima of KKV Trading says one overlooked issue continues to loom over the industry: too many feedlot pens sitting empty, particularly across the southern Plains. In this week's episode of Cattle Call, Kooima said feedlot utilization has become a tale of two regions. While Nebraska and Iowa remain near capacity, large portions of Texas are operating well below normal because of years of herd liquidation. "There's tons of feedlot capacity that's being underutilized." Kooima said the imbalance is especially pronounced in Texas, where recent Cattle on Feed reports have shown inventories running well below year-ago levels. Some operations are attempting to offset those losses with beef-on-dairy cattle, but many yards still have significant unused space. "The empty pen thing is the South… especially and particularly in Texas. You're talking about 72 to 80 percent on feed year-on-year in Texas. There's feedlots that are literally for sale, underutilized." He says that presents a difficult economic reality for feedyards built to handle much larger cattle numbers. "You can't run a feedlot that's 50 percent full. I mean, it's just economically not feasible." Kooima said the issue highlights how uneven the cattle cycle has become, with Northern feedlots remaining relatively full while excess capacity continues to weigh on parts of the southern feeding sector. Other topics discussed: Plant Disruptions and Captive Supplies: Labor strikes in Fort Morgan, Colorado, and a plant closure in Lexington, Nebraska, allowed packers to divert contractually committed "captive supply" cattle to other facilities, effectively cutting cash buyers out of the active market. USDA Export Data Error: A major USDA reporting correction on beef export data drew criticism, with Kooima noting the error "doesn't exactly make you exude super confidence" in federal agricultural statistics. Mexican Border and Screwworm Facilities: The USDA is expected to bring new sterile fly production facilities online by late July and October. The facilities are key to controlling New World screwworm populations and could influence when the Mexican border is cleared to reopen for cattle trade. Summer Video Auctions: Cattle volumes in early summer video auction catalogs are down roughly 28% to 29% from last year. Kooima cautioned producers against delaying sales in hopes of repeating last year's historic late-season price rally. #agriculture #cattlemarket #markets #ranchlife #farmlife #newworldscrewworm #cattlecall #cattle #beef #podcast